Page 16 - FINAL CFA SLIDES JUNE 2019 DAY 1

Code of Ethics and Standards of Professional Conduct/
Guidance for Standards I - Vii

LOS 2.c: Explain the ethical responsibilities required by the Code and Standards, including the sub-sections of each Standard.

III. DUTIES TO CLIENTS

A. Loyalty, Prudence, and Care: Must always act with reasonable care and exercise prudent judgment –for the benefit of
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your clients; place clients’ interests before your employer’s or yours!

B. Fair Dealing (and objectively) with all clients.

C. SUITABILITY (When in advisory relationship with a client or prospective client, you must):

a. Make a reasonable inquiry his/her’ investment experience, risk and return objectives, and financial constraints
before any recommendation (action); and you must reassess and update this regularly.
b. You must take client’s written objectives, mandates, and constraints before any advice;
c. Judge the suitability of investments in the context of the client’s total portfolio

If responsible for managing a portfolio to a specific mandate, strategy, or style, only make advice that is consistent
with the stated objectives and constraints of the portfolio.